ESG data – extensive, varied and multi sourced. How do we implement strong controls and governance?

ESG (environmental, social and governance) data is extensive, varied and often comes from a wide variety of sources, both internal to the asset manager and via external data feeds. For many asset managers, there is a challenge in getting access to credible ESG data, making sense of it, checking for consistency and accuracy across the various sources, mastering where appropriate and meeting regulatory disclosure requirements.

In many cases the first challenge is to arrive at a consistent view of the data. Large, externally sourced structured data sets blended with some poorly structured internal data is a typical problem. The challenge of comparing and interpreting non standardized data, the analysis of which may differ across different investment teams, is also problematic. In addition, managers need to validate the data, apply overrides where required and run data checks, such as those driven by SFDR (Sustainable Finance Disclosure Regulation) disclosure requirements.

In many cases the first challenge is to arrive at a consistent view of the data.

Curium meets these requirements by providing the tools to integrate both internal and external ESG and sustainability data into the investment process. Curium gathers the data, models it to a common shape and then evaluates, applies quality controls, regulatory checks for disclosure reporting, mastering, where needed, and provides a lineage and governance layer for full transparency.

As highlighted by the EDM council, a strong data governance framework should provide procedures for continuous monitoring and tracking of issues. ESG data quality issues that arise in business processes and applications should follow a standard approach that resolves the problem. In addition, updates to include ESG data should be made to mitigation procedures and preventative controls that are part of existing business, data management and technology policies and standards.

Curium ESG solutions are being used by some of the leading investment management specialists in the industry.

Requirements are evolving quickly: New sources, new formats, new checks, more visibility over lineage and governance. Setting this up in Curium is both quick and flexible and automates as much of the process as possible while providing the exception management tools to identify the data records sets that need further analysis and intervention.
Only with Curium data management tools will the firm be able to use the ESG data to achieve the insights and decision making that they need.

Curium – Innovative data solutions for real business needs